Business models and project selection in construction companies

Purpose – The purpose of this study is to investigate project selection in the context of business management with the specific aim of understanding the role of business models in project selection. The logic followed for making decisions and selecting projects significantly influences construction companies’ success. Design/methodology/approach – The research objective is pursued by conducting a multiple-case study. Managers acting in key decision-making roles from eight construction companies are interviewed. A conceptual framework is developed for analysing the interview data and the prevailing project selection practices in construction. Findings – The findings suggest that project selection is not guided by any specific business model, but that the decision-making process is dominated more by short-term factors such as need of work and profitability. Thus, estimation know-how largely determines the kind of projects companies are willing to consider, regardless of their competence to deliver them. Res...

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